/biz/ - Business & Finance

[Anonymous No.52229443]

What's so bad about inflation?

Prices will rise to keep up with it anyway, and debts will be much lower to pay back.

[Anonymous No.52229448]

>>52229443
>What's so bad about inflation?
>Prices will rise to keep up with it

[Anonymous No.52229468]

If what you meant was *wages* will rise to keep up with it, then no, wages are more inelastic. The real problem is that the money you already have is now worth less, so you are losing real value all the time by holding cash.

[Anonymous No.52229504]

>>52229443

[Anonymous No.52229543]

>>52229468
rich people become poorer over time because of inflation, so rich people have to work hard to maintain their wealth, if rich people are lazy, their wealth will be shrunk by inflation

do you think rich people should be rich forever without doing anything and just be a lazy shit everyday?

[Anonymous No.52229579]

>>52229543
That's a separate issue, and generally people that are sufficiently rich have assets that will yield sufficient income to outlast an an inflationary period. Your problem seems to be more with capitalism and/or how wealth accumulates and is hoarded.

[Anonymous No.52229602]

Inflation is built in intentionally to get you to spend money on assets that have tangible benefit to the economy instead of just sitting on your bags of money. The problem is central banks print too much and give it away to banks and megacorps who's only goal is to push down wages and maximize profits. Hence the increasing gap between wages and productivity

[Anonymous No.52229614]

savings get eroded

[Anonymous No.52229621]

>>52229443
in third world countries like america, prices will go up like 20x and pay won't go up at all.

[Anonymous No.52229681]

>>52229443
Two main issues.

1) Redistribution of wealth; lookup Cantillon effect.

2) Even more serious is the dislocation of capital that artificially lower interest rates produce. Resources are wasted to long term crap (that only appear potentially profitable due to the lower interest rates) instead of more urgent needs. Lower interest rates would normally correspond to higher savings. Imagine what crap you would spend your money on if you *thought* you have 100 millions in the bank, and then suddenly realize you only had 1 million and you just wasted it. Artificially low interest rates, or "printing" (the only possible cause for sustained inflation), is what tricks everyone into thinking they have more resources than they actually do.

[Anonymous No.52230283]

>>52229504
Crypto retards looking real stupid right about now when the dollar did a 300% gain vs their crypto ponzis in less than 1 year. Lmao.
Looks like the dollar is backed by something: the Fed

[Anonymous No.52230297]

I have no idea if people are actually suffering because of the economy. Are you suffering anon?

[Anonymous No.52230318]

When wages and growth don’t raise with it (stagflation) the middle class will get wiped out. So instead of stagflation, we need deflationary depression

[Anonymous No.52230344]

>>52229543
>rich people become poorer over time because of inflation

Wrong.

Rich people own tons of assets that keep growing in value.

People who dont own anything get raped by inflation because they get permanently locked out of ever owning anything

Lmao @ you falling for the "MUH RICH PEOPLE SUFFER THE MOST BECAUSE OF INFLATION"

[Anonymous No.52230509]

>>52230344
He probably meant progressive taxation

[Anonymous No.52231351]

>>52229443
>wages will rise to keep up with it anyway
HAHAHAHAHAHAHAHAHAHAHAHAHAHA

[Anonymous No.52231393]

>>52229443
>get a promotion and a 30% raise
>cost of living goes up 20%
>barely doing better than i was before
>(despite having more responsibility at work)

it's a scam. i feel bad for people in the lower income tiers who went from $15/hour to $18/hour but their rent increased from $800 a month to $1.2k a month.

[Anonymous No.52231447]

>>52230283
and that same crypto did a 500% gain vs the dollar the previous year

[Anonymous No.52231470]

>>52231393
in the exact same boat anon and I just had my 3rd child. got an email the other day that daycare costs are rising and I’m thinking “we can barely pay this, how are the other families able to do it?”

[Anonymous No.52231907]

>>52229443
There is nothing inherently bad about inflation. as you can see on my graph if production and consumption can keep up with inflation then there is no bad effects from it meanwhile if inflation increases faster than consumption and production then it becomes bad as money starts too loose value faster than it can gain it.

this is why you need atleast a bit of inflation at all times because otherwise your economy can't grow and will instead shrink.

t. learned economics in swedish high school

[Anonymous No.52231970]

>>52230344
if rich people weren't hurt by inflation the FED wouldn't have stopping inflation as one of its only goals

[Anonymous No.52231979]

>>52229443
They don't want to pay workers to keep up with it you nonce

[Anonymous No.52232168]

Inflation increases, debt remains constant, wages remain constant. Spoiler alert, you don't gain anything except your cost of living increases.

[Anonymous No.52232480]

>Middle class and rich have assets > cash
>poor people cash > assets cuz they live paycheck to paycheck and don’t invest

Poor people then vote in retards who promise free gibsmedat.

[Anonymous No.52232502]

>>52229543
FUCK 'EM.! JUST KEEP RAISING INTEREST RATE AAAAAAAAAAAAAAAAAAAAAHHHHHHHHHHHHHHHHHHHHHHHHH

[Anonymous No.52232523]

>>52229504
>isnt backed by anything
Theres trillions of usd worth of debt held by institutions around the world

[Anonymous No.52232546]

The prospect of upward mobility is what drives the economy. If value is constantly being drained from both your wage and your savings account, you have very little prospect of upward mobility. Once people lose hope and adjust their behavior accordingly, that's when things break down in a cascade.

[Anonymous No.52232616]

>>52229543
>doesnt understand money
>hates "rich people"
pottery